Q. Consider the following statements: The share of the Primary Agricultural Credit Societies (PACS) in the delivery of rural credit is falling Primary Agricultural Credit Societies (PACS) can not borrow from Commercial Banks Which among the above statements is/ are correct?
Answer: Both 1 & 2 are correct
Notes:

1. True - The share of Primary Agricultural Credit Societies (PACS) in delivering rural credit has been declining due to the rise of regional rural banks and microfinance institutions.
2. True - PACS cannot directly borrow funds from commercial banks. They can only receive deposits and lend to members. For funds, they are dependent on Central Cooperative Banks.

So both statement 1 and statement 2 are correct. The share of PACS is falling in rural credit delivery and they cannot directly borrow from commercial banks.

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